COVID-19 impact on the job market in March 2020

Learn how healthy is the job market in March 2020, and what are COVID-19 implications

As all the media is indicating, there has been significant shift on the job market. The big move from lack of workforce to sudden rise in unemployment is having big impact on everyone’s lives.

So, let’s see what’s happening with the hiring. We analyzed the top job ads across different categories and got the hiring trends. For the month of March 2020, there is a big drop in hiring towards the end of the month.

March 2020 job market conditions

This is nothing new. The number of job openings is shrinking. However, it’s worth of pointing that end of the month is always having a drop in the number of job opportunities, partially due to hiring managers meeting hiring advertising budgets. As an example, here is the same graph for the month of February 2020.

February 2020 job market conditions

Given the COVID-19 spread, shrinking job market is on the other hand expected. However, when we look holistically, there is still a number of opportunities available, especially in some sectors such as trucking and healthcare.

Beginning of the year is historically being good time to find a new job. This year has been no exception, until now. Based on collected data, we see 50% drop in new hiring compared to the expected trend. Below is the graph showing job opening for the first part of this year.

2020 job market conditions

With all this being said, how we can interpret current job market conditions?

There are particular industries that are tremendously suffering job losses. For instance, if you are looking for a job in travel or hospitality industry, dining, bars, or nightclub jobs, there is a very little chance to find the opportunity.

Of course, the biggest reason to this is COVID-19 and government’s regulation, and social distancing regulation extended through the end of April 2020.

On the bright side, hiring is still not at the standstill. There are still chances to get a job, but it’s likely to be a career change in a different sector. In order to support this, below is the comparison of July 2019 job market conditions with this month, March 2020. Compared to March, July is a very slow month when it comes to hiring and job search, so comparing current conditions to the lowest band of annual job market conditions can indicate how progressive is slowdown in hiring.

July 2019 and March 2020 job market conditions

So, where is the biggest hiring loss? Beside job losses in particular industries, it’s important to emphasize that overall the number of positions for recent graduates and junior positions have been shrinking faster than other levels. It’s being particularly tough for gym and fitness studios, as well as hair and nail salons.

Since public events, gatherings and conventions have been cancelled, there will be also coming a big pressure on jobs related to these categories.

All these factors when combined together produced the job loss of about 3 million positions in March.

Not surprisingly, we also see a smaller number of people looking for employment. This is good news for those eager to find a new job as soon as possible.

Our advice? Things will turn around, and there will be surely bigger demand for the workforce. In this difficult time, it is the most important to take care of own wellbeing.

Stay safe!